Book Value for New Machine Calculator

✖Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.ⓘ Hourly Depreciation [D_h]			+10% -10%
✖Life Span (in Hours) refers to the usage period or total life of a machine.ⓘ Life Span [L_s]			+10% -10%

✖Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge.ⓘ Book Value for New Machine [C_bv]

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Formula

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Book Value for New Machine

Formula

`"C"_{"bv"} = ("D"_{"h"}*"L"_{"s"})/0.9`

Example

`"4002"=("20.01"*"180h")/0.9`

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Book Value for New Machine Solution

STEP 0: Pre-Calculation Summary

Formula Used

Book Value = (Hourly Depreciation*Life Span)/0.9
C_bv = (D_h*L_s)/0.9
This formula uses 3 Variables

Variables Used

Book Value - Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge.
Hourly Depreciation - Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.
Life Span - (Measured in Hour) - Life Span (in Hours) refers to the usage period or total life of a machine.

STEP 1: Convert Input(s) to Base Unit

Hourly Depreciation: 20.01 --> No Conversion Required
Life Span: 180 Hour --> 180 Hour No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

C_bv = (D_h*L_s)/0.9 --> (20.01*180)/0.9

Evaluating ... ...

C_bv = 4002

STEP 3: Convert Result to Output's Unit

4002 --> No Conversion Required

FINAL ANSWER

4002 <-- Book Value

(Calculation completed in 00.004 seconds)

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Credits

Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

Mithila Muthamma PA has verified this Calculator and 700+ more calculators!

< 11 Management of Construction Equipment Calculators

Average Investment if Salvage Value is not 0

Go Average Investment = (Salvage*(Useful Life-1)+Capital Cost*(Useful Life+1))/(2*Useful Life)

Horsepower given Quantity of Oil

Go Engine power = (Quantity of Oil-(Crankcase Capacity/(5*Time between Change of Oil)))*(0.74/(0.0027*Operating Factor))

Quantity of Lubricating Oil

Go Quantity of Oil = (Engine power*Operating Factor*0.0027/0.74)+(Crankcase Capacity/(5*Time between Change of Oil))

Capacity of Crankcase when Quantity of Oil is Determined

Go Crankcase Capacity = 5*Time between Change of Oil*(Quantity of Oil-(Engine power*Operating Factor*0.0027/0.74))

Average Investment when Salvage value is 0

Go Average Investment = ((1+Useful Life)/(2*Useful Life))*Capital Cost

Capital Cost when Salvage Value is 0

Go Capital Cost = (2*Useful Life*Average Investment)/(1+Useful Life)

Depreciation Cost when Straight Line Method is Assumed

Go Depreciation = (Total Cost-Scrap Value)/Useful Life

Book Value for New Machine

Go Book Value = (Hourly Depreciation*Life Span)/0.9

Life Span of Machine

Go Life Span = 0.9*Book Value/Hourly Depreciation

Hourly Depreciation

Go Hourly Depreciation = 0.9*Book Value/Life Span

Hourly Cost Worker

Go Hourly Cost = 12*Monthly Salary/Machine Hours

Book Value for New Machine Formula

Book Value = (Hourly Depreciation*Life Span)/0.9
C_bv = (D_h*L_s)/0.9

What are the factors affecting the Cost of Owning and Operating the Construction Equipment?

The different major costs contributing to the cost of owning and operating construction equipment are as follows:
1. Depreciation Cost
2. Investment Cost
3. Maintenance and Repair Cost
4. Operation Costs
a. Repair charges
b. Depreciation on tyres and tubes
c. Labour charges
d. Fuel charges
e. Operation and maintenance crew charges
f. Miscellaneous supplies
5. Downtime Cost
6. Obsolescence Cost
7. Replacement Cost

What is Depreciation Cost?

Depreciation is defined as the declining value of a machine due to its age, use and obsolescence. After years of working, the machine will be worn-out and the value becomes scrap value which is 10%less than the book value. This will require a replacement and for that a fund will be built-up, which is termed as depreciation.

How to Calculate Book Value for New Machine?

Book Value for New Machine calculator uses Book Value = (Hourly Depreciation*Life Span)/0.9 to calculate the Book Value, The Book Value for New Machine formula is defined as the value which is originally decided for the machine. The book values of assets are routinely compared to market values as part of various financial analyses. Book Value is denoted by C_bv symbol.

How to calculate Book Value for New Machine using this online calculator? To use this online calculator for Book Value for New Machine, enter Hourly Depreciation (D_h) & Life Span (L_s) and hit the calculate button. Here is how the Book Value for New Machine calculation can be explained with given input values -> 4000 = (20.01*648000)/0.9.

FAQ

What is Book Value for New Machine?

The Book Value for New Machine formula is defined as the value which is originally decided for the machine. The book values of assets are routinely compared to market values as part of various financial analyses and is represented as C_bv = (D_h*L_s)/0.9 or Book Value = (Hourly Depreciation*Life Span)/0.9. Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis & Life Span (in Hours) refers to the usage period or total life of a machine.

How to calculate Book Value for New Machine?

The Book Value for New Machine formula is defined as the value which is originally decided for the machine. The book values of assets are routinely compared to market values as part of various financial analyses is calculated using Book Value = (Hourly Depreciation*Life Span)/0.9. To calculate Book Value for New Machine, you need Hourly Depreciation (D_h) & Life Span (L_s). With our tool, you need to enter the respective value for Hourly Depreciation & Life Span and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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